Every organization, no matter how profitable it is, should work to trim excess fat to attain optimal efficiency. It is best to slash unnecessary expenses when the company does not desperately need it. This minimizes poor decisions made out of desperation. Regularly monitoring costs is in line with sound management practices.
Technology can be used to streamline business operations and, in the process, save money. The following are some ways of using technology to trim operating budgets:
- Automate whenever possible – You may not be involved in assembly line production, but whatever business you are in, there are areas that can be automated to minimize expenses. Using tools or apps in performing your accounting, payroll, taxation, and invoicing tasks will free up resources and time that can be spent on other activities.
- Move IT infrastructure to the cloud – Regardless of the type of business you have, you will need IT infrastructure to handle all your files, transactions, websites, and more. Buying and maintaining your own physical servers will tax your budget. As your organization expands, you will have to constantly upgrade your servers and infrastructure, digging deeper into your pocketbook. Taking your IT infrastructure to the cloud will free you from the worries and expenses of maintaining a large and complex infrastructure. If you grow, all you need to do is to upgrade to a higher tier package that will not entail fixed costs and depreciation. Your files can simply be kept on cloud-based storage systems such as Google Drive and Dropbox.
- Opt for free apps and tools – Why buy when you can get it for free? You can shop around to find complimentary online versions of software that would otherwise add up. Almost every type of software has a free version. Need to write a document or work with a spreadsheet? Create and edit documents using OpenOffice. For email, try a free marketing automation platform such as MailChimp. Additionally, save on unnecessary travel time and costs by using Skype or FaceTime to communicate.
- Invest in green technology – Use eco-friendly technology to save precious dollars. CFL and LED lights can save up to 75 percent on energy costs. Determine the number of light bulbs you have in your business and then calculate your savings on energy cost. The sum will surprise you.
Using technology to cut down on your expenses helps your bottom line. It also saves time and reduces your carbon footprint.